- Oil breaks the bullish consolidation range to the downside.
- US-China trade spat; global growth concerns weigh heavily.
- Focus on trade news, US weekly Crude Stock data for the next direction.
WTI (futures on Nymex) is seen making a recovery attempt from daily lows of 53.55, but the bulls appear to lack vigor amid ongoing US-China trade dispute.
Lingering US-China trade concerns hit risk
The black gold stalled its two-day recovery mode and fell sharply in the European trading after a renewed wave of risk aversion hit the markets, as the escalating verbal spat between the US and China on the trade front intensified global growth concerns. Bleak global economic outlook will weigh on the oil demand growth outlook, eventually collaborating to the downside in the prices.
Moreover, the safe-haven appeal of the US dollar returned, as risk-off crept in, further adding to losses in the barrel of WTI. A stronger greenback makes the USD-denominated oil more expensive for the holders in foreign currencies.
Despite bullish US Oil Rigs Count data and Kuwait’s Oil Minister’s comments, the prices remain vulnerable, as the broader market sentiment plays a key role. Markets now await fresh trade headlines and US weekly Crude supplies report for the next direction on the prices.
WTI Levels to watch
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